Q2 revenue growth slows, shares fall

It affirmed its full-year forecasts given in May, citing resilience in the Professional division, which sells databases and tools to accountants, lawyers, tax, health and other professionals.

But the London shares, which had gained 13 per cent since the beginning of August, fell 8 per cent before recovering some of the day’s loss. Analysts have said the real test will come late in the year when customers set their 2009 budgets.

“The results were not great,” Reuters itself quoted London derivatives trader Manoj Ladwa as saying. “The market was pricing in half-decent figures and that’s what it got.”

Q2 pro forma revenue rose 11 per cent from a year earlier to $3.4 billion, compared with a 12 per cent increase to $3.3 billion in the first quarter.

The company said markets revenue growth was driven by strength in sales and trading, investment and advisory, and enterprise businesses, particularly in Asia.

“We are encouraged by the robust revenue growth which we achieved despite the backdrop of a challenging economic environment,” CEO Tom Glocer said. This environment was likely to last at least until the end of the year.

Thomson Reuters said pro forma underlying profit - excluding amortization and other items - rose 15 per cent to $708 million.

The company said it completed its $500 million share buyback programme in July, less than three months after announcing it, and that it would repurchase shares from time to time in the future.

The stock fell as much as 8 per cent before recovering to 1,481 pence, nearly 5 per cent lower, in London. On the Toronto Stock Exchange the share fell 4.1 per cent before recovering slightly. ■